The artist has donated the complete sum of his twenty-five thousand pound honor cash to the MVT, which functions to preserve the Britain's small music venues.
He was given the prize on 16 October as his new release his work was named the top album of the last 12 months.
Fender has decided to hand the money over to the trust, in acknowledgment of the vital role grassroots venues had in his beginning days.
"I personally would not have achieved my current career if it wasn't for all the gigs I played around the North East, and elsewhere, when I was just getting going," remarked Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have ceased operations – roughly one-sixth of the total UK scene.
Over the past year, top acts like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by applying a minor surcharge to their ticket prices, which supports local stages.
Sam Fender also took part, raising in excess of £100,000 on his 2024 arena tour to support 38 local spots across the UK.
These funds assisted venues that were dealing with possible closure due to issues arising from floods, fires and personal losses, as well as licensing issues, court cases and noise complaints.
Other venues obtained financial assistance in modernizing infrastructure and technical equipment that directly benefitted performers and fans.
"The notion that funds from performances in big venues backs the local stages, where it begins for musicians like me, is just sensible," Fender has commented.
Fender is not the first artist to donate his Mercury Prize funds to good deeds.
In Pulp won the award in 1996 for their release their work, frontman Cocker stated that the group would contribute their winnings to the charity War Child.
In 2002, rapper and singer Ms Dynamite split her prize between a few organizations, including the NSPCC and a Sickle Cell charity.
"And I gave a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked new equipment," she told outlets.
Previously, they contributed their winnings to the youth organization that nurtured their act, in addition to other local music groups.
Also the 1994 recipients the group contributed their award to a charity for MS after a acquaintance was identified with the condition.
"The victory was sufficient," said artist Heather Small. "The cash was the cherry on top but we didn't need the bonus, because we had the main prize. So our winning impacted somebody else's life."
Last week, the MVT shared it had saved several small stages in south-east England, by transferring them to local control.
The first in Southampton and The Croft in that location were bought under the Own Our Venues scheme, which is backed by the arts council and enthusiasts who purchase "stakes" in the venues.
